TOBIQUE LTD.
Income Statement
Month Ended August 31,2018
Revenues:
Service Revenue	$9,290
Interest Revenue	$20
Total revenues		$9,310
Expenses:
Depreciation Expense	$203
Rent Expense	$380
Advertising Expense	$220
Supplies expense	$750
Salaries expense	$6,230
Total Expenses		$7,783
Income before income tax		$1,527
Income tax		$290
Net income		$1,237

TOBIQUE LTD. Statement of Changes in Equity Month Ended August 31, 2018
		Common Shares		Retained Earnings		Total Equity
Beginning balance		$12000		$6040		$18040
Net income				1237		1237
Dividend				-550		-550
Ending balance		12000		$6727		$18727

G.

closing journal entries

Date

Account Titles and Explanation

Debit

Credit

• Closing entry

  Date	account and explanation	Debit	Credit
  Aug 31	Service revenue	9290
  	Interest revenue	20
  	Income summary		9310
  	(To close revenue)
  Aug 31	Income summary	8073
  	Depreciation expense		203
  	Rent expense		380
  	Advertising expense		220
  	Supplies expense		750
  	Salaries expense		6230
  	Income tax expense		290
  	(To close expense)
  Aug 31	Income summary	1237
  	Retained earnings		1237
  	(To close net income)
  Aug 31	Retained earnings	550
  	Dividend		550
  	(To close dividend)

G.)

Post the closing journal entries and calculate and enter balances. Assume Tobique closes its books monthly. (Post entries in the order of journal entries presented in the previous part. If the ending balance is 0 select Bal for the date and enter 0 for the normal balance for that account.)

1,910 550 Cash Aug. 1 Bal. 5,520 Aug. 1 440 Aug. 6 3,040 Aug. 3 380 Aug. 13 4,100 Aug. 10 2,910 Aug. 29 750 Aug. 17 Aug. 24 3,110 Aug. 31 Aug. 31 Bal. 4,1101 Accounts Receivable Aug. 1 Bal. 4,740 Aug. 6 3,040 Aug. 27 4,400 Aug. 31 Bal. 6,100 Prepaid Advertising Aug. 1 440 Aug. 31 Adj. 220 Aug. 31 Bal. 220 Supplies Aug. 1 Bal. 1,030 Aug. 31 Adj. 750 Aug. 22 720 Aug. 31 Bal. 1,000 Prepaid Rent Aug. 3 380 Aug. 31 Adj. 380 Aun. 31 Bal. olicy. 2000-2020 John Wiley & Sons, Inc. All Rights Reserved. A Division of John Wiley & Sons, Inc. Huy: J1 Mai, Aug. 1 Bal. Aug. 31 Bal. Note Receivable 4,000 4,000 Interest Receivable Aug. 1 Bal. Aug. 31 Adj. Aug. 31 Bal. 40 Aug. 1 Bal. Aug. 15 Aug. 31 Bal. 2,030 203 2,233 Equipment 10,100 1,910 12,010 Accumulated Depreciation - Equipment Aug. 1 Bal. Aug. 31 Adj. Aug. 31 Bal. Accounts Payable 1,910 Aug. 1 Bal. Aug. 15 Aug. 22 Aug. 31 Bal. Salaries Payable 1,460 Aug. 1 Bal. Aug. 31 Adj. Aug. 17 2,500 1,910 720 3,220 Aug. 10 1,460 1,670 Common Shares Aug. 1 Bal. Aug. 31 Bal. Retained Earnings Aug. 1 Bal. 12,000 12,000 6,040 Aug. 31 550 Aug. 31 1237 Dividend Declared Aug. 31 xl Aug. 31 Service Revenue Aug. 13 Aug. 27 Aug. 31 Adj. 4,100 4,400 790 Aug. 31 Bal. 9290||Aug. 31 Bal. 9,290 Interest Revenue Aug. 31 Adj. 20 Aug. 31 20 Aug. 10 Aug. 24 Aug. 31 Adj. Salaries Expense 1,450 3,110 1,670 Aug. 31 Bal. 6,230 Aug. 31 Bal. 6,230 Rent Expense Aug. 31 Adj. 380 Aug. 31 Adj. 380 Supplies Expense Aug. 31 Adj. 750 Aug. 31 Adj. Depreciation Expense Aug. 31 Adj. 203 | Aug. 31 203) Income Tax Expense Aug. 31 Adj. 290||| Aug. 31 UU Advertising Expense Aug. 31 Adj. ( 420A | Aug. 31 Income Summary Aug. 31 8073 ||| Aug. 31 Bal. / Aug. 31